The Department of Labor in 2012 issued a final rule to Improve transparency of fees and expenses to workers in 401(k)-type retirement plans.
The rule says that the investment of plan assets is a fiduciary act governed by the fiduciary standards in ERISA Section 404(a)(1)(A) and (B), which require plan fiduciaries to act prudently and solely in the interest of the plan’s participants and beneficiaries.
The rule says that the investment of plan assets is a fiduciary act governed by the fiduciary standards in ERISA Section 404(a)(1)(A) and (B), which require plan fiduciaries to act prudently and solely in the interest of the plan’s participants and beneficiaries.
The final rule also provides that when a plan allocates investment responsibilities to participants or beneficiaries, the plan administrator must take steps to ensure that such participants and beneficiaries, on a regular and periodic basis, are:
- made aware of their rights and responsibilities regarding the investment of assets held in, or contributed to, their accounts; and
- provided sufficient information regarding the plan and the plan’s investment options, including fee and expense information, to make informed decisions with regard to the management of their individual accounts.
The rule also says that a plan administrator must provide to each participant or beneficiary certain plan-related and investment-related information.
Editor’s Note: ERISA Tips is a feature provided with you in mind—to make the newsletter more useful to you! If you have any content for ERISA Tips or the NTSA Advisor that you would like to contribute or suggest, please contact John Iekel, editor of the NTSA Advisor, at [email protected]
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